Gold, silver ETFs tumble up to 7% despite bullion rebound as global correction hits domestic prices

Wed Mar 04 2026

Gold and silver exchange-traded funds (ETFs) declined sharply in early trade on Wednesday even as global bullion prices rebounded, reflecting the steep correction seen in precious metals in the previous session when Indian markets were closed.

At around 09:55 am, the broader market remained under pressure, with the Sensex down 1,621.9 points or over 2 percent at 78,617 and the Nifty falling 505.5 points to 24,360.2. Market breadth was weak, while volatility spiked, with India VIX rising more than 20 percent to 20.69.

Silver-linked ETFs saw the steepest declines. ICICI Prudential Silver ETF fell 7.33 percent, Nippon India Silver ETF dropped 7.12 percent, SBI Silver ETF declined 7.18 percent, and Tata Silver ETF slipped 7.43 percent in early deals.

Gold ETFs also traded lower. ICICI Prudential Gold ETF fell 3.87 percent, Nippon India ETF Gold dropped 3.3 percent, SBI Gold ETF declined 3.52 percent, and Tata Gold ETF slipped around 3.09 percent.

previous-session slump weighs on ETFs

The sharp fall in domestic bullion ETFs largely reflects the steep global correction in precious metals on Tuesday, when Indian equity markets were closed for a holiday. Gold had dropped more than 4 percent in the previous session, hitting its lowest level in over a week as a stronger US dollar and fading expectations of near-term interest-rate cuts weighed on investor sentiment. Silver saw an even sharper decline, falling more than 8 percent in the same session.

Bullion rebounds amid geopolitical tensions ...

Prices recovered partially on Wednesday as geopolitical tensions resurfaced. According to Reuters, Spot gold rose about 1.6 percent to $5,168.69 per ounce, while US gold futures gained around 1.1 percent. Spot silver climbed about 3.5 percent after the previous session’s sharp drop.

Safe-haven demand returned as escalating US-Israeli air strikes on Iran and broader conflict risks across the Middle East heightened global uncertainty.

... But domestic prices reflect global correction

Despite the rebound in international markets, domestic bullion prices remain lower after retreating from recent record highs above $5,300 per ounce. In India, the price of 24-carat gold in Delhi has fallen roughly Rs 2,800-2,900 per 10 grams, bringing prices closer to the Rs 1.67 lakh mark.

Analysts say the recent volatility in precious metals reflects a tug-of-war between safe-haven demand driven by geopolitical tensions and pressure from a stronger dollar and inflation concerns linked to surging energy prices.

Source: https://www.moneycontrol.com